HF 

3212 

P19B21 


Ballivián 


Bolivia 


THE  LIBRARY 

OF 

THE  UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


Pan  American  Financial  Conference. 


BOLIVIA 


MEMORIAL 

From  the 

Government  Delegate  and 

Representative    of    the    National    Chambers    of 

Commerce  and  Banking   Institutions. 


1915. 


Pan  American   Financial  Conference. 


BOLIVIA 


MEMORIAL 


By 


ADOLFO    BALLIVIAN 

Government    Delegate    and    Representative    of   the 
National  Chambers  of  Commerce  and  Banking  Institutions 


1915. 


HP    ■ 

32-15- 


MEMORIAL 


^502937 


BOLR^IA,  in  response  to  the  invitation  extended  to  her 
by  the  United  States  Government  to  be  represented  at 
the  "Pan  American  Financial  Conference"  to  be  held 
on  May  24th,  1915,  has  appointed  to  act  as  her  delegation  the 
Envoy  and  Minister  Plenipotentiary  at  Washing-ton  and  the 
Consul  General  in  New  York  who  also  has  been  nominated 
to  represent  the  Bolivian  Chambers  of  Commerce  and  Bank- 
ing Institutions. 

The  Minister  of  Finance,  Mr.  Julio  Zamora,  being 
unable  to  attend  personally,  for  the  purpose  of  elucidating 
the  subjects  and  problems  to  be  discussed  at  the  said  Con- 
vention, and  undoubtedly  of  the  most  preeminent  importance 
for  the  economic  interests  of  the  American  Continents,  has 
graciously  consented  to  suggest  in  rough  outlines  "a  few 
conceptions  relating  to  such  fundamental  rec|uirements  as 
may  justly  be  considered  as  the  basis  for  practical  measures 
that  will  result  in  the  perpetuation  and  the  reliable  and 
constant  development  of  the  commercial,  industrial  and 
financial  relations  between  Bolivia  and  the  United  States,  an 
ultimate  purpose  for  the  accomplishment  of  which,  with 
respect  to  each  and  every  Pan-American  country,  the  said 
Convention  is  no  doubt  destined  to  take  the  initiative." 

As  it  appears  expedient  to  record  in  its  original  form 
the  true  sentiment  of  the  Government  of  Bolivia,  as  expressed 
with  marked  accuracy  by  her  Minister  of  Finance,  we  shall 
give  an  unabridged  transcription  of  the  same,  in  pursuance 
of  the  above  quotation : 

"Since  no  statement  of  concrete  subjects  for  discussion  is 
attached  to  the  Note  of  hivitation,  it  may  logically  be  presumed 
that  the  United  States  of  America  primarily  intends  to  avail 
herself  of  this  Convention  for  recording  the  truthful  expression 
of  the  aims  and  requirements  of  each  country,  as  well  as  data 
relating  to  the  industrial  and  financial  possil)ilities  it  affords,  for 
the  purpose  of  using  them  as  a  hasis  for  steadfastly  pursuing 
the  development  of  the  channels  of  trade  and  industry  which, 
while  already  existent,  have  not  as  yet  assumed  the  desired 
importance. 


"W'e  dare  hope,  nevertheless,  that  initiative  measures,  to 
be  adopted  in  support  and  furtherance  of  the  reciprocal  commer- 
cial relations  between  North,  Central  and  South  America,  will 
l)e  sul)mitted  to  the  Convention  as  a  ijcneral  subject  for  discussion 
in  the  interest  of  all  concerned  which,  after  all,  is  essentially 
the  purpose  for  which  it  is  held,  as  well  as  other  subjects  and 
projects  tending  to  secure  for  the  x\merican  Continents  the 
greatest  possible  degree  of  independence  in  their  economic  life. 
In  view  of  such  a  program,  we  can  only  give  our  support  to  any 
and  all  such  propositions  as  embody  a  practical  idea  and  will 
redound  to  the  common  benefit,  and  in  this  connection  we  might 
suggest  to  the  United  States  —  as  one  of  the  efficient  means 
for  establishing  more  active  business  relations  between  the  differ- 
ent countries  —  the  necessity  of  increasing  her  merchant  marine 
to  such  an  extent  that  it  will  facilitate  an  ample  interchange  of 
domestic  products. 

"With  particular  reference  to  the  wants  of  Bolivia,  it  may 
be  stated  that,  in  the  opinion  of  the  Government,  they  consist 
essentially  in  two  ]:)rimary  requirements  which  must  necessarily 
be  made  manifest,  to  wit :  In  the  first  place,  supplies  of  capital 
for  developing  her  industries,  and  in  the  second  place,  the  open- 
ing up  of  markets   for  her  products. 

"Commencing  with  the  mining  industry,  irrefutably  the  most 
prosperous  and  comparatively  the  most  largely  developed  source 
of  production  in  the  country,  it  may  safely  be  said  that  every 
enterprise  in  this  line  is  in  need  of  the  fruitful  impulse  imparted 
by  capital,  when  supplied  on  terms  that  are  in  accordance  with 
the  peculiar  character  or  nature  of  such  enterprises,  in  so  far  as 
they  will  allow  of  such  gradual  development  as  they  require. 
While  the  production  of  tin  and  copper  has  undoubtedly  ad- 
vanced during  the  past  few  years,  until  the  outputs  now  represent 
quite  considerable  figures,  being  the  two  largest  items  of  our 
export  trade,  these  results  are  to  be  attributed  to  the  few  enter- 
prises organized  on  a  solid  basis,  and  it  nevertheless  remains  a 
fact  that  there  are  a  large  number  of  small  producers  who  are 
prevented,  by  lack  of  financial  resources,  from  actively  devel- 
oping their  workings.  In  this  connection  it  is  at  once  evident 
that  the  general  economic  situation  would  be  more  largely  bene- 
fited by  the  relatively  satisfactory  earnings  of  the  innumerable 
small  enterprises,  than  by  the  affluence  of  three  or  four  mines. 

"But  if  copper  and  tin  offer  a  large  field  for  the  investment 
of  foreign  capital  in  our  country,  it  behooves  us  for  still  better 


reasons  to  mention  and  urf^e  the  workiii!^  of  our  deposits  of  silver, 
bismuth,  tungsten  and  antimony,  which  metals  are  now  being 
produced  on  a  small  scale  only,  notwithstanding  the  abundant 
supplies. 

"With  regard  to  agriculture  in  general,  the  conditions  sur- 
rounding this  field  of  endeavor  are  such  as  to  allow  of  the  state- 
ment —  paradoxical  as  it  may  appear  at  first  glance  —  that  it 
offers  far  better  chances  of  success  by  private  initiative,  inas- 
much as  agriculture  is  not  based  on  the  set  principles  of  modern 
industrial  organization  and  is  less  dependent  on  scientific  progress, 
both  of  which  are  factors  for  whose  application  the  investment 
of  large  amounts  of  capital  from  which  no  immediate  returns  are 
expected,  is  an  essential  necessity. 

"It  may  readily  be  acknowledged  that  our  agriculture  is 
still  in  an  embryonic  state,  and  that  it  is  being  carried  on  with 
no  other  object  in  view,  than  that  of  obtaining  from  nature 
what  she  will  readily  give.  This  applies  not  only  to  foodstuffs 
and  cattle  breeding,  but  also  to  the  production  of  rubber  by  a 
system  that  absolutely  requires  reorganization,  with  a  view  to 
establishing  plantations  that  will  in  future  be  capable  of  com- 
peting against  the  scientifically  devised  East  Indian  rubber 
plantations. 

"The  field  of  arts  and  manufactures  still  remains  virgin 
soil.  The  country  may  be  said  to  be  devoid  of  manufacturing 
enterprises  in  any  of  the  manifold  and  profitable  lines,  this 
leaving  an  untilled  field  for  private  initiative  and  for  the  invest- 
ment of  capital,  with  the  assurance  of  general  good  will  to  afford 
protection  to  such  enterprises. 

"In  the  opinion  of  the  Government  of  Bolivia,  the  main 
efforts  of  its  delegates  should  be  directed  towards  giving  the 
capitalists  and  banking  concerns  in  the  United  States  an  insight 
into  the  future  of  our  industries,  and  into  the  safeguards  pro- 
vided by  our  Constitution,  so  as  to  induce  them  to  organize  enter- 
prises of  every  description,  and  to  supply  capital. 

"Meanwhile,  and  independently  of  such  initiative  measures 
as  their  own  judgment  and  due  appreciation  of  existing  condi- 
tions may  induce  them  to  take,  it  will  in  the  judgment  of  the 
Government,  be  expedient  to  suggest,  asa  concrete  and  practical 
proposition,  the  necessity  of  establishing  in  Bolivia  Mining  and 
Agricultural  Banks,  or  at  least  an  agency  of  one  of  the  large 
American  banking  institutions,  for  the  purpose  of  making  them 
available  as  a  financial  body  or  center,  capable  of  examining  into 


and  reporting  on  any  and  all  economic  wants  and  requirements, 
whose  satisfaction  and  fulfilment  may  be  made  mutually  pro- 
fitable. 

"With  reference  to  the  United  States  as  a  market  for  our 
principal  products  which,  for  the  time  being,  may  be  restricted 
to  tin  and  copper,  the  Government  considers  it  expedient  to  de- 
clare that  without  absolutely  withdrawing  from  the  present 
European  markets  as  an  Í7tdispensable  requirement,  the  country 
would  be  willing  to  supply  the  United  States  with  such  quantities 
of  crude  material  as  her  industries  may  require,  for  which  pur- 
pose it  would  be  primarily  necessary  for  the  U.  S.  A.  to  place 
herself  on  an  equal  footing  with  her  competitors,  with  respect 
to  operating  conditions  and  to  her  capacity  as  a  consignee,  by 
means  of  the  erection  and  installation  of  adequate  smelting  works. 
"With  respect  to  the  purely  commercial  field,  the  further 
i  suggestion  might  be  submitted  to  organize  a  general  association 

of  American  manufacturers,  for  the  exclusive  purpose  of  main- 
taining information  agencies  in  the  capitals  of  the  Central  and 
South  American  countries  so  as  to  give  the  trade  an  opportunity 
to  examine  the  samples,  prices  and  catalogs  of  the  goods  they 
require,  before  ordering  them  from  Europe,  thereby  affording 
them  an  opportunity  of  securing  such  advantages  as  may  be 
gained  by  giving  the  preference  to  manufacturers  and  dealers 
in  the  United  States." 

This  plain  and  frank  statement,  emanating-  from  so 
authoritative  a  source,  shows  that  the  financial  and  com- 
mercial crisis  now  prevailing  in  our  country  can  readily  be 
overcome  by  the  internal  measures  already  in  force,  and  that 
this  may  be  accomplished  with  results  insuring  mutual  be- 
nefits and  permanent  connections,  if  the  United  States,  by 
exerting  the  powerful  influence  of  her  Goverment,  will  secure 
the  beneficial  cooperation  of  her  financial  and  commercial 
centers. 

This  is  likewise  borne  out  by  the  fact  that  the  invitation 
to  send  representatives  to  the  Washington  Convention  has 
met  in  pursuance  of  the  wishes  expressed  by  our  Government, 
with  so  favorable  a  reception  on  the  part  of  the  banking  and 
other  commercial  interests  of  Bolivia,  who  have  even  gone 
so  far  as  to  submit  valuable  suggestions  to  their  represent- 
ative. We,  therefore,  beg  leave  to  make  known  the  various 
points  which  Mr.  Jorge  Saenz,  President  of  the  Chamber  of 

8 


Commerce  of  La  Paz,  urges  us,  in  behalf  of  the  bankino- 
institutions  and  other  interests  of  our  country,  to  set  forth 
before  the  Convention : 

I.  "To  make  known  the  fact  that  there  have  been  estabhshed 
in  the  cities  of  La  Paz,  Sucre,  Oruro,  Cochabamba,  Potosi, 
Tarija,  Santa  Cruz  and  RiberaUa,  properly  organized  Chambers 
of  Commerce,  in  which  all  the  Banking  and  prominent  com- 
mercial interests  are  represented,  and  that  these  Chambers  of 
Commerce  are  at  all  times  prepared  to  furnish  on  request  any 
required  information  regarding  commercial  and  industrial 
matters. 

II.  "To  make  every  possible  effort  to  induce  the  New  York 
Exchange  to  establish  a  system  of  daily  quotations  of  the  market 
prices  of  Bolivian  export  products,  such  as  tin,  silver,  copper, 
tungsten,  antimony,  bismuth,  rubber  and  cinchona  bark,  and  to 
have  such  quotations  transmitted,  through  the  agency  of  some 
information  bureau,  to  the  Bolivian  Government,  so  as  to  enable 
the  latter  to  communicate  the  same  to  the  Chambers  of  Com- 
merce throughout  the  Republic  of  Bolivia. 

III.  "To  inform  the  business  interests  of  the  United  States 
with  regard  to  the  basis  on  which  Bolivian  importers  do  business 
with  European  concerns,  particularly  with  reference  to  the  terms 
of  payment  for  orders,  or,  in  other  words,  to  make  known  to 
them  that  such  business  is  done  on  the  basis  of  payment  at  the 
end  of  ninety  days  from  date  of  receipt  of  the  goods.  To  impress 
upon  them,  in  short,  the  necessity  of  opening  credits  in  favor  of 
Bolivian  firms  of  acknowledged  financial  and  commercial  stand- 
ing, so  they  may  pay  for  the  goods  ordered  against  drafts  made 
out  to  the  order  of  Bolivian  Banks,  and  payable  at  the  end  of 
ninety  days  as  a  minimum  term. 

"The  system  now  generally  adopted  by  business  concerns 
in  the  United  States,  under  which  they  demand  payment  in 
advance  for  orders  given  them,  is  most  unsuitable  for  the  fur- 
therance of  the  development  of  commercial  relations. 

IV.  "To  call  the  attention  of  the  North  American  com- 
mercial interests  to  the  necessity  of  reestablishing  steamship 
traffic  over  a  route  which,  starting  from  San  Francisco, 
California,  is  to  embrace  the  entire  Western  coast  line  of  South 
America,  for  the  purpose  of  facilitating  and  developing  the 
trade  in  flour,  lumber,  fruit  and  other  products  of  the  soil,  etc. 


V.  "To  suggest  the  proposition  of  establishing  an  American 
Bank  in  some  of  the  cities  of  lioHvia,  or  else  Branch  Offices  in 
some  of  the  Departmental  capitals.  The  National  City  Bank 
has  already  estal)lishcd  a  branch  in  T>uenos  Aires,  and  an 
available  Branch  Office  of  an  American  15ank  would  prove  to 
be  an  imi)ortant  factor  in  furtherance  of  the  development  of 
commercial  intercourse. 

VI.  "To  secure  special  quotations  on  P.olivian  rubber 
vi^hich,  with  respect  to  its  vises  in  the  arts  and  manufactures,  pos- 
sesses the  same  qualities  as  the  grade  of  rubber  known  as  "Hard 
Fine  Para."  The  export  prices  of  Bolivian  rubber  are  based 
at  the  present  time  under  the  "Moliendo"  designation  and  it 
is  thus  being  confounded  w^ith  the  rubber  exported  from  Perú 
v^^hich  is  of  inferior  quality.  This  is  a  highly  important  matter, 
by  which  our  exporters  will  benefit  to  the  extent  of  several 
hundred  thousand  dollars  Bolivian  Currency. 

Vn.  "To  call  the  attention  of  the  Convention  to  the  neces- 
sity of  making  the  teaching  of  the  Spanish  language  obligatory 
in  the  commercial  schools  and  colleges  of  the  United  States,  with 
a  view  to  facilitating  the  development  of  commercial  intercourse. 

VI IL  "To  point  out  to  North  American  manufacturers 
the  necessity  of  establishing  in  the  United  States  tin  smelting 
works  on  a  large  scale,  as  the  only  means  for  competing  against 
the  European  smelting  works,  and  for  diverting  the  exports  of 
this  material  into  the  American  market. 

IX.  "To  impress  upon  the  export  trade  of  the  United 
States  the  further  necessity  of  adopting  a  different  method  of 
packing  in  the  case  of  merchandise  and  machinery  for  shipment 
to  Bolivia,  since  all  such  shipments,  without  exception,  now 
arrive  in  exceedingly  bad  condition.  They  require  a  special 
method  of  packing,  both  solid  and  strong,  so  it  wall  be  able  to 
withstand  the  numerous  trans-shipments  to  which  such  goods 
must  generally  be  subjected. 

The  economic  conditions  prevailing-  in  Bolivia  having 
thus  been  outlined,  with  a  snecification  of  the  measures  re- 
quired for  the  betterment  of  the  same,  and  for  opening-  up 
new  channels  for  her  commerce  and  industry,  in  close  con- 
nection with  the  United  States  of  America,  the  delegates, 
vested  with  due  authority,  will  be  capable  of  handling-  these 
and  other  subjects,  and  of  amplifiying  the  same,  in  such 
manner  as  they  may  consider  expedient  in  view  of  their 
experience  and  knowledge  of  this  country. 

10 


In  view  of  the  fact  that  the  proceedings  of  the  Conven- 
tion will  presiiniahly  be  confined  to  the  discussion  of  matters 
of  a  general  character,  since  it  can  scarcely  be  expected  to 
enter  into  an  examination  and  discussion  of  affairs  directly 
and  exclusively  concerning  each  individual  country,  we  have 
decided  to  prepare  this  present  memorial  which  we  shall 
strive  to  make  as  concise  as  possible,  since  we  have  reason 
to  presume  that  the  representatives  of  the  other  countries 
will  have  recourse  to  similar  means  of  communication,  thereby 
providing  a  collection  of  reference  records  that  will  be 
available  for  following  up  the  initial  suggestions  which  it 
will  undoubtedly  not  be  possible  to  convert  into  resolutions 
insuring  immediate  results. 

Our  statement  will  be  confined  to  demonstrations  essen- 
tially of  an  economic  and  financial  character,  supported  by 
specific  data  and  statistical  tal)les,  without  entering  upon  geo- 
graphical descriptions,  etc.,  with  respect  to  which  it  will  be 
sufficient  to  refer  to  the  valuable  store  of  information 
gathered  and  supplied  by  the  "Pan  American  Union"  of 
Washington,  on  whose  premises  the  Convention  is  to  hold 
its  sessions  and  to  which  all  American  coimtries  are  indebted 
for  its  efficent  and  persevering  cooperation. 

We  consider  it  opportune  to  transcribe  on  this  occasion 
the  ideas  recently  expressed  by  us  in  an  article  printed  in 
"The  Nation's  Business,"  published  in  Washington,  D.  C. : 

"Bolivia,  as  well  as  all  countries  in  the  world,  has  been 
affected  by  the  European  war,  in  the  depression,  for  the  mo- 
ment, of  her  economical  situation. 

it  is  time  to  point  out  how  inaccurate  it  is  to  include 
under  the  common  designation  of  South  America  (this  being 
so  frequently  the  case),  all  of  the  nationalities  south  iof 
Panama,  especially  as  each  one  of  them  possesses  its  own 
peculiar  characteristics,  particularly  with  respect  to  natural 
resources  and  economic  and  trade  conditions. 

In  this  way  Bolivia,  being  so  far,  a  country  without 
seaports,  all  her  energies  have  been  employed  in  establishing 
a  complete  railway  net  of  communication  and  developing  her 
mineral  resources — the  agricultural  products  have  been  insuf- 
ficient to  meet  the  demand  of  her  domestic  consumption — 
consequently  the  crisis  in  Bolivia  is  not  so  intense  and  the 
remedy  for  the  actual  economical  problem  is  easier  to  achieve 
than  in  other  countries  with  a  more  complicated  economical 
organization. 

11 


Bolivian  trade  lias  been  mostly  carried  on  with  the 
German  and  lin^-lish  markets,  which  are  now  shut  up,  so 
that  we  are  unable  to  sell  them  those  i)roducts,  or  use  credits 
from  those  sources  in  order  to  divert  trade  in  our  natural 
dilemma  towards  the  united  States  of  America. 

There  are  two  princi])al  articles  of  exportation  from 
Bolivia,  wherefrom  in  reciprocation,  the  demand  of  articles 
of  importation  are  obtained,  i.  e.  India  rubber  and  minerals 
— principally,  tin  and  copper. 


INDIA  RUBBER. 

Bolivia,  and  Brazil,  produce  the  best  quality  of  rubber 
obtained  from  the  trees  of  the  "Hevea  or  Syphonia  Elástica" 
known  in  the  market  as  Para  Rubber,  but  owing  to  the  fore- 
sight and  persevering  endeavors  of  the  English  Government 
to  acclimatize  those  trees  in  their  Asiatic  dominions,  seeds 
were  carefully  collected  from  Brazil  since  1865  where  with 
economical  and  scientific  methods,  plantations  have  spread 
all  through  the  Orient  causing  deadly  competition  against 
the  South  American  Rubber  Industry,  in  spite  of  the  superior 
quality  of  its  product. 

Nevertheless,  it  seems  to  me,  that  in  prevision  of  the 
prolongation  of  the  war,  and  perhaps  of  future  comphcations 
which  may  extend  their  devastations  to  the  rubber  regions 
in  the  Orient,  it  would  be  wise  for  the  United  States  capi- 
talists to  look  forward  and  undertake,  without  delay,  similar 
well  organized  plantations  in  the  Jiabitat  of  the  rubber  tree 
in  Bolivia  and  Brazil,  where  now^  on  account  of  the  depressed 
situation  lands  can  easily  be  acquired  as  well  as  estates  where 
already  exist  great  quantities  of  fully  matured  rubber  trees 
ready  for  immediate  exploitation  of  the  article. 

Furthermore,  there  are  other  most  important  consider- 
ations to  be  borne  in  mind  if  the  people  of  this  country  care 
to  be,  once  for  all,  free  from  subserviency  to  the  English 
market  with  respect  to  this  indispensable  article  for  the  in- 
dustrial world.  I  accordingly  refer  to  the  authoritative 
views  of  Mr.  Henry  C.  Pearson,  Editor  of  "The  Indian 
Rubber  ^^^orld"  in  which  he  calls  attention  to  the  possibility 
that  in  the  near  future,  the  closely  planted  areas  of  rubber 
trees  in  the  Orient,  will  be  subjected  to  different  natural 

12 


perils  producing  the  devastation  that  may  perhaps  wipe  out 
those  plantations  entirely,  as  happened  with  the  coffee  in 
Ceylon : 

THE  FUTURE  OF  RUBBERS 

As  to  the  future,  if  the  ratio  of  increase  in  producing  and 
planting  remains  the  same,  the  production  of  plantation  of  rubber 
in  the  next  five  years  should  reach  500,000,000  pounds.  Such 
an  output  would  probably  mean  a  drop  in  price  to  at  least 
5  cents  a  pound.  It  would  also  mean  a  wonderful  expansion  of 
the  rubber  manufacturing  industry  in  new  and  unimagined  lines, 
as  w^ell  as  in  the  old.  But  will  nature  allow  such  areas  of  one 
growth  to  supplant  others?  Will  not  rubber  have  its  boll  weevil, 
its  scale,  its  bud  rot?  The  planters  have  from  the  beginning 
fought  white  ants,  canker,  caterpillars ;  and  the  entomologists 
and  mycologists  of  the  world  are  on  the  alert  to  defend  these 
new  plantations.  Will  it  not  happen  that  these  closely  planted 
areas  will  suffer  and  perhaps  be  wiped  out  as  coffee  was  wiped 
out  in  Ceylon?  And  will  it  therefore  not  come  about  that  a  wider 
distribution  of  planted  areas  will  be  a  necessary  one  that  will 
include  tropical  Central  and  South  America,  Africa  and  our 
own  Philippines,  and  thus  assure  the  permanence  of  this  most 
valuable  product?" 

In  Bolivia,  there  are  great  opportunities  and  new  induce- 
ments for  these  plantations  on  account  of  the  recent  instal- 
lation of  the  "Madera  Mamore  Railway"  built  with  American 
capital  in  connection  at  Porto  Velho  with  ocean  steamers  of 
4,000  tons  admitting  navigation  during  four  months,  and 
of  2,000  tons  all  year  round. 

TIN  AND  COPPER. 

The  output  of  tin  in  P)olivia  represents  45,000  long  tons 
of  ore  of  60%  grade  which  has  all  been  shipped  to  smelters 
in  Germany  and  England,  which  on  account  of  the  war 
are  now  closed,  so  that  Bolivia,  notwithstanding  being 
next  to  the  Strait  Settlements  as  producer  of  tin,  is  unable 
to  obtain  a  market  for  her  ore  in  this  country  as  there  does 
not  exist  any  smelter  here  for  that  purpose;  the  one  built 
12  years  ago  in  Bayonne,  N.  J.  was  never  in  operation  and 
is  now  dismantled,  since  the  English  Government  in  view 

13 


of  protecting  their  own  output  imposed  a  heavy  duty  on  all 
ores  exported  from  the  Straits  to  smelters  out  of  the  British 
Dominions. 

The  building  of  a  smelter  in  this  country  to  treat  Boli- 
vian tin  ores  would  be  a  solution  offering  mutual  advantages. 

Amongst  these  advantages  it  is  evident  that  in  recipro- 
cation, which  is  the  basis  in  which  all  legitimate  commerce 
rests,  this  country  will  obtain  the  pig  tin  much  cheaper  than 
when  imported  from  Europe  by  avoiding  the  ocean  freight 
of  $12  per  ton  on  the  metal  from  Europe  to  New  York;  in 
addition,  it  must  be  considered  that  the  representative  value 
of  this  new  importation  to  this  country  means  some 
$20,000,000  (thus  increasing  tenfold  the  actual  imports  of 
this  country  to  Bolivia^  that  would  be  invested  in  the  pur- 
chase of  x-Xmerican  goods  to  be  exported  to  Bolivia,  and  in 
this  way,  placing  in  this  country  the  interchange  of  trade 
which  existed  between  the  European  nations  at  war. 

These  are  some  of  the  most  essential  features  of  the 
trade  of  my  country  to  which  I  call  the  attention  of  the 
business  people  of  the  United  States. 

I  may  as  well  mention  that  the  Bolivian  copper  mines 
produce  a  higher  qualit}^  of  ore  than  any  other  South  Ame- 
rican countries,  consequently  it  would  only  require  a  simple 
form  of  metallurgical  plant,  that  could  easily  be  adapted 
alongfside  the  tin  smelter. 


^fc>^ 


PETROLEUM  FIELDS. 

Recently  vast  extensions  of  petroleum  fields  have  been 
discovered  in  the  southern  region  of  Bolivia,  and  the  news- 
papers announce  that  a  French  Company  with  a  capital  of 
$4,000,000  has  been  organized  to  exploit  those  wells ;  this, 
seems  to  me,  another  good  opportunity  to  interest  the  Amer- 
ican capital  in  my  country. 

As  countless  publications  have  been  made  with  unprac- 
tical generalities  emphasizing  the  opportunities  for  this  coun- 
try to  supplant  the  South  American  trade  with  Europe,  it 
is  well  to  remember  that  the  general  commercial  situation 
is  embarassed  everywhere  by  financial  stringency,  in  order 
to  proceed  with  careful  investigation  and  in  a  spirit  of  mutual 
help  in  preparing  fields  to  meet  future  competition  success- 
fully. 

14 


With  these  premises  I  may  mention  the  goods  and  arti- 
cles that  were  imported  from  Eng-land,  France,  Germany, 
Belgium,  etc.,  and  which  perhaps  could  be  permanently  im- 
ported in  future  from  the  United  States:  Rifles,  revolvers, 
cartridges,  cotton  goods,  chintz,  watches,  medicines  and 
drugs,  chemicals,  cars  and  wagons,  rails,  carriages,  auto- 
mobiles, electrical  a])pliances,  canned  goods,  meats,  fish,  fruits 
and  vegetables,  coal,  hardware,  glassware,  earthenware,  min- 
ing and  agricultural  machinery,  champagne,  wines  and 
liquors,  tin  plate,  plumbers'  appliances,  condensed  milk, 
extract  of  meat,  hams  and  bacon,  musical  instruments,  pianos, 
pianolas,  and  gramophones,  printing  paper,  and  ink,  station- 
ery, furniture,  cement,  hats,  underwear,  rubber  goods,  boots 
and  shoes,  soap  and  perfumery,  etc." 

Both  for  individuals  and  nations,  probity,  an  honorable 
record  and  reliable  resources  are  endowments  that  constitute 
assets  establishing  their  standing  and  credit,  as  a  basis  for 
sound  financial  operation  and  connections. 

BOLR^IA  thus  stands  before  the  world  of  finance  with 
an  unstained  record  of  exceptionally  favorable  description . 


FACTS  AND  DATA  CONSTITUTING  DISTINCTIVE 
FEATURES  OF  ECONOMIC    CONDITIONS   IN    BOLIVIA 

I.  Bolivia  may  be  said  to  have  maintained  peace  and 
order  in  her  domain  for  40  years  past,  the  last  shortlived 
disturbance  having  occured  20  years  ago. 

II.  Having  no  sea  ports,  she  has  devoted  all  her  energy 
to  the  task  of  spreading  a  network  of  railways  over  her  vast 
territory,  admirably  blessed  with  the  gifts  of  Nature. 

III.  The  delicate  problems  arising  in  connection  with 
the  marking  out  of  her  boundaries,  have  practically  all  been 
solved  by  Bolivia  in  harmonious  agreement  with  her  ad- 
joining sister  republics. 

IV.  On  a  few  occasions,  as  in  the  case  of  Brazil,  for 
instance,  where  it  became  necessary  to  cede  sections  of  her 
territory,  the  consideration  for  the  same,  amounting  to 
$10,000,000,  was  wholly  and  entirely  applied  to  the  construc- 
tion of  railways,  without  the  misappropriation  of  a  single 
penny. 

V.  Bolivia  has  punctually  paid  the  interest  on  its  public 

15 


delít,  incliuling-  both  inland  and  foreií^n  loans,  and  attended 
to  their  redemption. 

VI.  She  has  never  failed  to  fulfil  her  oblis^ations,  or 
refused  to  allow  just  claims,  whether  presented  by  her  citizens, 
or  by  aliens. 

VTT.  The  life  of  aliens  and  foreig'n  capital  have  always 
been  amply  protected,  and  there  is  no  recollection  of  any 
claims  having  been  presented  for  attacks  on  the  same. 

VII.  The  foreii^n  debt  of  Bolivia  amounts  to  scarcely 
$15,000,000  and  has  now  been  reduced  to  $14,335,312,  or 
actually  to  $9,383,812,  inasmuch  as  the  balance  of  the  last 
loan  of  $4,951,500,  made  in  1913  by  the  Credit  Mobilier  de 
Paris,  has  not  as  yet  been  expended  and  is  drawing-  interest 
at  the  rate  of  3%  per  annum  in  the  country,  until  a  decision 
shall  have  been  arrived  at  with  regard  to  the  proposals  for 
the  construction  of  the  Tupiza  and  La  Quiaca  railway  (on 
the  Argentine  border),  for  which  the  said  loan  was  exclu- 
sively appropriated. 

IX.  The  firm  confidence  and  good  credit  which  Bolivia 
enjoys  in  Europe  are  proven  by  the  fact  that  the  loan  in 
question  was  placed  on  even  more  favorable  terms  than  prior 
loans,  viz.  at  90%,  with  interest  at  the  rate  of  5%  per  annum 
and  an  annual  redemption  of  1%,  under  the  supplementary 
obligation  to  buy  the  materials  for  the  permanent  way  and 
the  rolling  stock  for  the  said  railway  in  France. 

X.  The  Bolivian  constitution  ranks  among  the  most 
liberal,  and  the  Mining  Code  as  well  as  the  Laws  governing 
land  concessions  offer  exceptional  safeguards  and  other 
attractive  features. 

XL  The  population  of  Bolivia  is  only  2,500,000,  while 
the  country  covers  an  area  of  708,195  square  miles,  the  aver- 
age population  per  square  mile  being  consequently  3.53, 
leaving  an  enormous  field  for  the  development  of  agriculture 
and  for  cattle  raising,  for  both  of  which  large  sections  of  the 
country  are  splendidly  adapted. 

XII.  The  different  branches  of  arts  and  manufactures 
are  still  in  a  practically  embryonic  state,  and  likewise  afford 
special  advantages  for  all  who  are  willing  to  establish  the 
same,  the  Government  having  taken  efficient  and  sagacious 
measures  for  the  protection  of  infant  industries. 

XIII.  Bolivia,  jointly  with  the  Argentine  Republic, 
Chile  and  Peru,  constitutes  a  group  exceptionally  favored 

16 


with  respect  to  its  geogTaphical  location,  inasmuch  as  the 
immense  area  covered  by  these  countries,  affording  ample 
room  for  hundreds  of  millions  of  future  settlers,  produces 
and  contains  in  the  depths  of  its  soil  all  the  natural  products 
of  the  globe.  With  the  productive  aid  of  adequate  capital, 
innumerable  industrial  enterprises  can  there  derive  ample 
vitality  from  mutual  interchange  alone. 

XIV.  This  territory,  the  greater  part  of  which  is 
within  the  temperate  zone,  is  exempt  from  tropical  diseases, 
and  it  may  safely  be  expected  that  its  present  population  of 
20,000,000  will  increase  to  over  50,000,000  inhabitants  within 
a  quarter  of  a  century. 

STATISTICAL  TABLES 

At  the  nominal  rate  of  exchange  in  Bolivia,  12.50  Boli- 
vian dollars  ("pesos  bolivianos")  are  equal  to  1  pound 
sterling,  the  value  of  the  Bolivian  dollar  being  consequently 
$0.40  U.  S.  Gold  Cy.  The  present  crisis  has  caused  various 
declines  in  these  exchange  values. 

DEVELOPMENT  OF  IMPORTS  AND  EXPORTS 
DURING   THE   PERIOD    1902-1913. 


Year 

Exports 

Imports 

Total  amounts 

1902 

Bs.  28.041,537 

Bs.  14.143,342 

Bs.  42.184,919 

1903 

25.169,148 

16.252,885 

41.422,033 

1904 

31.465,026 

16.909,586 

48.374,612 

1905 

41.795,937 

20.298,772 

62.094,709 

1906 

55.654,516 

35.087,325 

90.741,901 

1907 

50.331,548 

37.897,611 

88.229,159 

1908 

47.138,320 

40.732,543 

87.870,863 

1909 

63.764,467 

34.224,764 

97.989,231 

1910 

75,622.147 

48.802,394 

124.424,541 

1911 

82.631,172 

58. 371. 409 

141.002,581 

1912 

90.122,987 

49.508,990 

139.631,977 

1913 

93.721,513 

54.762,834 

148.484,347 

The  figures  for  the  year  1914  are  not  as  yet  available. 

The  foregoing  Table  shows  that  the  exports  exceeded 
the  imports  by  71.14%  in  the  year  1913. 

The  growth  in  the  volume  of  business  (imports  and  ex- 
ports) during  the  last  decade,  i.e.  from  1904  to  1913,  is 
represented  by  the  difference  between  48,374,612  and 
148,484,347  Bolivianos,  equal  to  an  increase  of  301%. 


17 


GENERAL   STATEMENTS   OF   EXPORTS,    TABULATED 

ACCORDING    TO    COUNTRIES. 

SPECIFICATION 


COUNTRIES 

I 

Live 
Stock 

II 

Foodstuffs 

and 
beverages 

III 

Crude  and 
roughly   pre- 
pared mater- 
ials 

IV 

Manu- 
factured 
articles 

V 
Gold    and    sil- 
ver not   manu- 
factured   and 
gold  and  silver 
coin 

TOTAL 
AMOUNTS 

A  lilts,    in 
Bolivianos 

A  ints.    in 

Bolivianos 

A  lilts,  ill 
Bolivianos 

A  mts.     in 
Bolivianos 

A  mts.  in 
Bolivianos 

A  mts.  in 
Bolivianos 

Great    Britain, 

280.00 

820.74 

60.00 

74.428,267.57 

6.180,079.65 

4.513,870.63 

3.169,456.00 

869,193.20 

152.343.76 

548,596.51 

96,536.52 

10.422.20 

24,728.00 

5,347.00 

1,956.80 

1,949.00 

25,929.00 

1,088.00 

2,780.00 

30,411.10 

1.333,830.34 

7  5  7fi4  .^7fi  01 

1.766,909  96         7.973  73Q  3Í 

56,820.00 

4  571  838  63 

3.172  236  00 



14,242.68 

10,867.27 

150.00 

913,846.98 
590,517.19 
559,475.51 
98,136.52 
32,621.40 
24,728.00 
13,637.40 

Chile     

117,310.00 

171,870.00 

10,729.00 

1,600.00 

138,126.16 

411.20 

3,038.00 

18,750.00 



Brazil      

828.ÓÓ 
100.00 

7,462.40 

2,056.80 

1,680.00 

1,450.00 

612.80 

1,680.00 

1,450.00 

612.80 

600.00 

:::::::::: ::::;:::: 

Italy    

600.00 

10.00 

10  00 

Totals     

117,310.00'     27.759.89 

90.000,807.84 

261,199.30 

3.314,436.46 

93.721,513.49 

EXPORTS  FROM  THE  UNITED  STATES  TO  BOLIVIA  IN  1913: 

From   New    York     Bs.      2,958,523.97 

From   San    Francisco    952,620.00 

From    New    Orleans     191,872.15 


Bs.      4,103,016.12 


leaving   a   balance    of    Bs.    50,659,818.00 

for  exports  from  Europe. 

NATIONAL  REVENUES  DURING  THE  LAST  DECADE  1904-1913. 


Year 

Revenues 

Year 

Revenues 

1904 
1905 
1906 
1907 
1908 

Bs.      6.838,576 

7.854,698 

10.401,512 

13.166,684 

11.604,063 

1909 
1910 
1911 
1912 
1913 

Bs.    11.847,231 
12.583,232 
16.913,512 
20.164,602 
22.018,874 

The   above   Table   shows   an   increase  of  23  0%   during  the   said   decade. 
The  annual  departmental   revenues   may  be  estimated  at    3,000,000  Boli- 
vianos. 

AMOUNTS  REQUIRED  FOR  THE  PAYMENT  OF  INTERESTS  ON  ALL  DEBTS 
AND  FOR  THEIR  REDEMPTION. 

Guarantee  of   "Bolivia    Railway"    Bonds     Bs.      750,000 

Guarantee   of   "Cochabamba   Light   &    Power"    Bonds 225,000 

For  interest  on,  and  redemption  of  other  loans 3,360,620 


Total Bs.  4,335,620 


As  the  national  revenues  amount  to  a  total  of  22,018,874  Bolivianos, 
the  above  e.xpenditure  represents  less  than  20'^f  of  the  same,  which  is 
certainly  a  very   significant  proportion. 


18 


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19 


The  floating  debt  invested  in  various  public  works  and 
for  public  service  purposes,  consists  of  loans  made  by  the 
national  banks,  amountinj^  to  Bs.  5,687,154,80  and  loans 
obtained  from  various  other  parties,  amounting  to  Bs.  1,014,- 
973,82,  making  a  total  of  6,702,128.62. 


BANKS  OF  ISSUE 

On  December  31st,  1913,  four  Banks  of  issue  were  in 
operation,  with  an  authorized  capital  stock  of  Bs.  75,000,000 
of  which  40,962,500  where  paid  up,  divided  as  follows: 

Banco  de    la    Nación   Boliviana Bs.  25.000,000 

Banco  Mercantil       25.000.000 

Banco  Nacional  de  Bolivia    12.500,000 

Banco  Francisco  Argadoña    12.500,000 

Total Bs.  75.000,000 


The  paid  up  capital  is  as  follows: 

Banco  de    la    Nación    Boliviana Bs.  18.962.500 

Banco  Mercantil       10.000,000 

Banco  Nacional    de    Bolivia     8.000,000 

Banco  Francisco    Argandoña     4.000,000 

Total Bs.  40.962,500 

The  profits  for  the  half  yearlv  term  expiring  December 
31st,  1913,  amounted  to  Bs.  1,527,371,06. 

The  right  vouchsafed  by  Law  to  issue  notes  for  a 
maximum  amount  of  150  per  cent  of  the  paid  up  capital  stock 
of  the  four  Banks,  represents  a  total  of  Bs.  61,443,750,  only 
Bs.  32,321,305  of  which  have  been  issued  by  the  said  Banks. 

The  gold  reserve  amounted  to  Bs.  15,587,912.50  and  the 
amount  of  coined  gold  on  hand  was  consequently  in  excess 
of  the  40%  required  by  Law. 

Under  an  Act  recently  passed  and  relating  to  the  organ- 
ization of  the  Banco  de  la  Nación  Boliviana,  the  said  Bank 
has  been  granted  the  exclusive  right  to  issue  notes,  the  Banco 
Nacional  de  Bolivia,  Banco  Mercantil  and  Banco  Francisco 
Argandoña  having  been  deprived  of  such  right,  with  the 
provision  that  they  must  redeem  the  notes  issued  by  them 
within  five  terms  of  six  months  each,  commencing  on  January 
1st,  1913. 

20 


The  only  foreign  Bank  established  in  the  country  at  the 
present  time  (but  not  empowered  to  issue  notes)  is  the  Banco 
Alemán  Transatlántico,  having  a  capital  of  Bs.  5,278,557. 

The  annual  dividends  declared  by  the  Banks  vary 
between  10%  and  20%;. 

MORTAGE  BANKS 

Four  institutions  doing  business  in  the  country  confine 
themselves  exclusively  to  loans  on  real  estate,  against  which 
they  issue  mortgage  bonds.  The  Banks  in  question  are  the 
following: 

Crédito  Hipotecario  de  Bolivia. 

Banco  Hipotecario  Nacional. 

Banco  Hipotecario  Garantizador  de  Valores. 

Banco  Hipotecario  Mercantil. 

Their  total  capital  stock  amounted  on  June  30th,  1913, 
to  Bs.  11,597,628,  and  the  paid  up  capital  stock  to  Bs.  865,000. 
The  amount  of  the  profits  on  June  30th,  1914,  was  Bs. 
87,322.22  divided  as  follows:  The  first  mentioned  Bank, 
31,801.84;  the  second,  Bs.  35,109.10;  the  third,  Bs.  16,272.02, 
and  the  last  mentioned  Bank,  4,139.26. 

CURRENCY  SYSTEM 

The  gold  standard  was  adopted  by  Law  on  December 
5th,  1908,  and  the  English  sovereign  and  the  Peruvian  pound 
are  legal  tender  for  the  payment  of  debts  at  the  fixed  rate 
of  exchange  of  Bs.  12.50  each. 

The  plan  prepared  by  the  Executive  for  the  coining  of 
national  currency  of  various  denominations,  is  subject  to  the 
decision  of  the  next  legislature. 

TIN 

The  production  of  Tin  in  Bolivia  has  constantly  in- 
creased, and  is  bound  to  increase  further  on  a  large  scale. 
At  the  present  time  it  amounts  to  about  one  fourth  of  the 
total  output  of  the  world,  being  surpassed  only  by  the  produc- 
tion of  the  Straits  Settlements  which  has  remained  stationary 
for  several  years,  with  an  evident  tendency  to  decrease. 

The  following  Table  shows  the  production  in  metric 
tons  of  2,204,6  lbs.  and  the  average  market  price  per  ton  in 
London. 

21 


Bolivia 

Straits 

World    i 

Average 

Years 

Settlements 

Production   ' 

Price 

1904 

13,750 

61,838 

103,100 

£126.14.  8 

1905 

15,023 

59.500 

102,400 

143.  1.  8 

1906 

17,447 

59,375 

104.400 

180.12.11 

1907 

16.858 

56,550 

102.400 

172.12.  9 

1908 

19.077 

63,690 

113.400 

133.  2.  6 

1909 

20.890 

61.540 

113,100 

134.15.  6 

1910 

24,539 

57,490 

114,800 

156.  6.  2 

1911 

25,628 

57,944 

117,600 

192.  7.  I 

1912 

25,100 

61,528 

124.700 

209.  8.  5 

1913 

28,500 

65,640 

128,900 

201.13.  7 

The  consumption  in  the  United  States  in  metric  tons  and 
the  average  price  during  the  same  period,  has  been : 


Years 

U.  S. 

Cy. 

1904 

37,400 

27.96 

cents 

per 

pound 

1905 

40.800 

31.36 

( 

1906 

43,700 

39.82 

' 

1907 

39,700 

38.17 

' 

1908 

32.800 

29.46 

' 

1909 

42.800 

29.72 

' 

1910 

49,900 

44.25 

' 

1911 

48,000 

34.12 

' 

1912 

51,700 

42.28 

' 

1913 

45,000 

46.10 

' 

The  official  statistics  of  Bolivia  give  the  following  figures 
for  the  exports  of  ''barrilla",  the  term  commonly  applied  to 
tin  concentrates  for  export,  containing  from  50%  to  70%  Tin: 


Years 

Metric  Tons 

1897 

3,749.5 

1898 

4,396.0 

■   1899 

9,279.4 

1900 

16,234.2 

1901 

21,915.9 

1902 

17,608.3 

1903 

28,131.4 

1904 

20,691.9 

1905 

26,912.0 

1906 

39.526.1 

1907 

31,323.7 

1908 

32.541.6 

1909 

35.566.4 

1910 

38.548.1 

1911 

39.840.6 

1912 

38.614.0 

1913 

44.594.0 

22 


GENERAL    TABLE    SHOWING    THE    OUTPUT    OF    THE    BOLIVIAN    MINING 
INDUSTRY    FR    THE    YEAR    1913. 


Metals 


Tin 

Silver  .  .  . 
Copper  .  . 
Bismuth  . 
Tungsten 
Zinc  .  .  .  . 
Lead  .  .  .  . 
Antimony 


tr.i  Value  in 

^  Bolivianos 


44,596.749  67.784,377 

81,289  2,784.354 

4.019,635  2.773.546 

422.484  '       2.092,925 

282.597  \         415,417 

7.367,463  I         223,150 

1,765.296  I         353,059 

62,050  1           12,410 


RUBBER 

We  reprint  below  a  few  interesting:  paragraphs  from  the 
official  report  for  1914  of  the  General  Collector  of  Customs: 

"This  vaulable  export  article  which  for  many  years  has  been 
one  of  the  largest  sources  of  revenue  for  the  Treasury,  as  well 
as  a  contributory  factor  towards  the  development  of  the  north- 
western and  eastern  districts  of  our  country,  has  suffered — more 
particularly  since  1912 — a  complete  setback  with  respect  to  the 
ruling  market  prices  in  Europe,  their  decline  being  exclusively 
due  to  the  baneful  competition  of  the  similar  product  now  being 
imported  from  the  plantations  established  many  years  ago,  princi- 
pally by  English  manufacturers,  in  the  British  Colonies  in  Asia 
and  Africa. 

"The  oldest  statistical  figures  relating  to  the  Bolivian  export 
trade  in  this  article,  date  from  the  year  1890,  and  it  appears 
from  the  available  data,  carefully  verified  by  the  corresponding 
section  of  this  Office,  that  the  shipments  during  the  said  year 
amounted  to  294,000  kilograms.  The  exports  of  this  product 
subsequently  increased  gradually  until  1910,  when  they  reached 
a  total  of  3,465,063  kilograms.  This  was  followed  by  a  decrease 
in  shipments,  continuing  until  1905,  for  which  year  the  minimum 
figures  of  1,468,233  kilograms  were  recorded.  Beginning  with 
the  year  1906,  however,  the  tide  turned  and  exports  increased 
again  until  1913,  when  they  attained  the  enormous  amount  of 
5,143  metric  tons,  the  highest  figure  recorded  during  the  24  years 
covered  by  our  statistical  data". 

Rubber  being  one  of  our  principal  export  products,  I  consider 
it  of  the  utmost  importance  to  record  in  the  following  table  the 
trade  fluctuations  to  which  this  article  has  been  subject  during 

23 


the  aforesaid  term  of  24  years,  and  which  tend  to  confirm  the 
foregoing  statements. 


Year 

1 
Kilograms  1 

Year 

Kilograms 

Year 

Kilograms 

1890 

294.000 

1898 

3.155,955 

1906 

1.929.608 

1891 

345.000 

1899 

2.664,091 

1907 

1.830,513 

1892 

363,430 

1900 

3.496,240 

1908 

2.606.591 

1893 

394.418 

1901 

3.465.063 

1909 

3.052,453 

1894 

632,500 

1902 

1.092.993 

1910 

3.117,650 

1895 

820,410 

1903 

1.745,324 

1911 

3.645,551 

1896 

1.140,712  i 

1904 

1.571,128 

1912 

4.079,828 

1897 

1.674,716  ! 

1905 

1  1.468,233 

1913 

5.143,214 

ARTS  AND  MANUFACTURES 


As  previously  stated,  mining  is  the  only  industry  that 
has  been  developed  on  any  considerable  scale.  In  a  primitive 
way,  there  is,  in  truth,  some  manufacturing  of  products  for 
domestic  consumption,  such  as  wines,  beer,  spirituous  liquors, 
cigarettes,  matches,  stearine  candles,  soap,  boots  and  shoes, 
domestic  wares,  chocolate,  crackers  and  biscuits,  etc.,  but 
there  still  remains  ample  room  for  improvement  in  enterprises 
of  this  description. 

Agriculture  and  cattle  raising  offer  great  inducements 
to  capitalists.  The  lands  are  now  lying  waste  in  consequence 
of  the  small  local  population,  resulting  in  insignificant 
consumption. 

For  the  encouragement  of  settlers,  the  legislature  of 
Bolivia  enacted  the  law  of  October  13th,  1905,  providing  that 
all  vacant  lands  are  Government  property  and  may  be  ac- 
quired by  purchase  or  otherwise,  in  accordance  with  special 
regulations.  The  unit  of  land  measurement  is  one  hectare 
(2.47  acres).  All  individuals  or  parties  are  entitled  to 
acquire  land  up  to  a  maximum  area  of  20,000  hectares, 
against  payment  in  cash  of  10  cents  Bolivian  Currency  (4c. 
U.  S.  Cy.)  per  hectare  for  ordinary  land,  and  of  one  Boliviano 
(40c.  U.  S.  Gold  Cy.)  for  lands  on  which  rubber  trees  are 
found.  The  purchaser  is  under  obligation  to  settle  at  least 
one  family  on  each  area  of  one  thousand  hectares. 

24 


CRUDE  OIL 

The  oil  wells  of  Bolivia,  supplying  a  splendid  fuel,  are 
one  of  her  most  productive,  if  not  most  immense  sources  of 
wealth,  in  view  of  the  increasing  demand  for  this  material. 
The  reports  of  competent  engineers,  commissioned  by  foreign 
capitalists,  show  that  there  are  enormous  stores  of  crude  oil, 
extending  from  Brazil  through  Bolivia  to  the  Argentine,  so 
vast  and  productive  that  they  describe  them  as  "the  largest 
in  the  world."  With  respect  to  this  industry  as  well  as 
agriculture,  development  is  dependent  on  the  construction  of 
railways  that  will  provide  convenient  access  to  the  Atlantic 
coast.  To  this  end,  the  construction  of  the  planned  railway 
line  between  Santa  Cruz  and  Puerto  Suárez  on  the  Paraguay 
river,  may  be  considered  as  one  of  the  most  urgent  necessities. 

RAILWAYS 


Kilometres 

Miles 

Actually  in  operation    (1913)    .... 

1,284 

803 

In  course  of  construction 

613 

383 

Projected,   with  plans  completed    .  . 

116 

485 

Projected,    plans   in    preparation    . . 

2,123 

1,327 

Proposed  lines,  plans  not  as  yet 

commenced 

450 

281 

Total 

5,246 

3,279 

25 


ROUTES  TO  BOLIVIA 

{Rcjviiit    [rum    a    pciiiiphlct    f^iiblislicd    by    llie    Legation    of    Bolivia 
in    U'iishi¡i}¡toii). 

By  ¡Vay  of  Moliendo : 

From  Moliendo  to  Puno  (Pern)  by  railway,  324  miles, 
time  22  honrs ;  from  Pnno  to  Gnayaqui  (Bolivia)  by  steamer 
crossing-  Lake  Titacaca  at  an  elevation  of  12,000  feet  al)ove 
sea  level,  180  miles.,  time  16  hours ;  from  Guayaqui  to  La  Paz, 
59  miles  by  railway,  time  3  hours,  l)eino-  a  total  distance  of 
563  miles,  covered  in  three  and  one  half  days. 

By  Way  of  Arica ^ 

From  Arica  (Chile)  to  La  Paz,  a  distance  of  337  miles, 
covered  by  railway  in  18  hours,  but  the  time  of  travel  on  the 
down  grade  from  La  Paz  to  Arica  will  shortly  be  reduced 
to  12  hours,  and  to  14  hours  on  the  up  grade  in  the  opposite 
direction.  This  line  is  equipped  with  coaches  of  the  American 
Pullman  car  type,  while  European  sleeping  cars  are  in  service 
on  all  the  other  lines. 

By  Way  of  Anfofai:;asfa. 

The  total  distance  of  573  miles  between  Antofagasta 
(Chile)  and  Oruro  (Bolivia)  is  covered  in  two  nights  and 
one  day. 

^3'  Way  of  flic  Argentine  Republic. 

From  Buenos  Aires  by  railway  to  the  Bolivian  border 
town  of  La  Guiaca.  A  railway  having  its  terminal  at  that 
city  and  extending  through  Tupiza  to  Uyuni,  a  station  on  the 
Antofagasta-Oruro  line,  is  now  in  course  of  construction 
and  will  make  it  possible  to  travel  from  Buenos  Aires  to  La 
Paz  in  about  four  days. 

Bolivia  is  blessed  with  exceptionally  extensive,  river 
navigation  facilities,  which  immensely  enhance  her  means  of 
transportation  and  communication,  the  total  length  of  her 
navigable  rivers  being  about  12,000  miles. 

27 


Bv  íf'av  of  Aiuarjoiias. 

The  distance  from  Para  (Brazil)  to  Villa  Bella  is  2,152 
miles,  and  to  Puerto  Cobija  (on  the  Acra  Eiver)  2,533  miles, 
the  time  of  travel  over  each  of  these  routes  being-  216  and 
244  hours  respectively.  Practically  the  entire  journey  is 
made  by  steamer,  but  on  the  trip  to  Villa  Bella  the  steamer 
stops  at  Porto  Velho,  and  passenj^ers  and  goods  are  trans- 
ferred to  the  Madeira-Mamoré  railway,  for  transportation 
over  a  distance  of  200  miles. 


^3'  Way  of  the  Farcii^iiay  River. 

Ascending  the  Paraguay  river  from  Buenos  Aires. 
Puerto  Pacheco  is  reached  after  travelling  a  distance  of  1553 
miles  The  journey  is  then  continued  to  Puerto  Suarez,  188 
miles  distant,  and  thence  to  La  Gaiba,  167  miles  further 
up  stream. 

Another  route  of  travel  from  Buenos  Aires  is  on  the 
Bermejo  River,  on  which  steamers  navigate  between  Esquina 
Grande  (Bolivia)  and  Rivadavia  (Argentina). 


MOST  DIRECT  ROUTES 

FROM  THE  UNITED  STATES  TO  BOLIVIA, 

AND  EXPENSE  OF  TRAVEL. 

First  class  steamer  passage: 

From  New  York  to  Panama,  7  days $75.00 

From  New  Orleans  to  Panama,  5  days 55.00 

From  San  Francisco  to  Panama,  25  days 120.00 

Te  second  part  of  the  journey  is  made  l)y  stramer  from 
Panama  to  Arica,  fare  $120. —  this  distance  being  covered 
in  9  days  by  the  fast  steamer  service  connecting  with  the 
New  York  and  New  Orleans  steamers. 

The  final  section  of  the  trip  is  made  by  railway  from 
Arica  in  14  hours,  the  fare  being  $18. —  inclusive  of  Pull- 
man berth. 

28 


IMMIGRATION  LAW. 

All  persons  not  over  60  years  of  age  and  establishing 
their  good  moral  character,  are  vouchsafed  the  following 
privileges  under  the  Law:  The  rigth  of  admittance  to  the 
country  and  of  transportation  to  their  place  of  destination 
over  the  roads  and  railways  of  the  country.  These  privileges 
also  extend  to  the  wife  and  children  of  any  such  person,  and 
include  free  transportation  of  their  baggage,  the  right  to 
occupy  public  lands  for  agricultural  purposes  and  cattle 
raising,  as  well  as  for  any  other  useful  industrial  purposes. 

Each  immigrant  may  secure  50  hectares  (about  120 
acres)  of  land,  the  price  of  w^hich  is  fixed  by  law  at  10 
centavos  (4  cents  Gold  Cy.)  per  hectare.  Children  over 
14  years  of  age  may  secure  an  additional  area  of  25  hectares 
(about  60  acres).  Immigrants  may  at  their  option  pay 
either  in  cash  or  in  annual  instalments  extending  over  5  years, 
in  which  latter  case  interest  on  the  purchase  price  of  the  land 
is  charged  at  the  rate  of  5%  per  annum.  Immigrants  may 
select  within  the  designated  district  the  land  they  desire  to 
purchase.  Children  over  18  years  of  age  are  entitled  to 
purchase  separate  sections  of  land.  No  immigrant  may 
become  the  owner  of  more  than  three  parcels  or  sections, 
either  by  purchase  or  otherwise.  In  case  immigrants  acquire 
land  against  payment  in  instalments,  they  are  prohibited 
from  selling  or  otherwise  transferring  such  property  and 
from  mortgaging  the  same,  the  State  being  the  holder  oí 
a  first  mortgage  on  such  land. 


PATENT  LAWS. 

All  inventors  are  vouchsafed  the  full  and  undisturbed 
enjoyment  of  the  benefits  of  their  invention,  provided  the 
same  are  not  contrary  to  public  order  and  good  morals. 

The  discovery  of  any  novel  methods  or  processes  for 
the  improvement  of  any  art  or  industry,  is  likewise  considered 
to  constitute  an  invention. 

Contrivances  devised  merely  for  the  purpose  of  modi- 
fying the  propositions  of  known  devices,  or  the  production 
of  articles  of  merely  ornamental  character,  will  not  be 
considered  to  constitute  inventions. 

29 


The  Government  reserves  the  ri^'ht  to  acquire  1w  pur- 
chase the  secret  of  any  useful  invention,  as  a  measure  of 
pulilic  utility. 

Patents  will  he  i^ranted  for  a  term  of  fifteen  years  onl)'-. 

TRADE-MARKS. 

The  right  of  exclusive  use  of  a  trade-mark  may  he 
secured  by  application  to  the  Department  of  Agriculture, 
Commerce,  Industry,  Development,  etc.  (Ministerio  de 
Fomento),  against  an  annual  payment  of  5  Bolivianos. 
Trade-mark  rights  may  be  secured  on  cuts  or  engravings, 
monograms,  vignettes,  embossed  prints,  letters  and  numbers 
with  special  designs,  labels  and  wrappers  for  merchandise 
and  any  and  all  other  marks  intended  to  distinguish  the  same 
from  other  manufactured  articles.  The  trade-mark,  when 
duly  secured,  becomes  the  exclusive  property  of  the  manufac- 
turer or  merchant  who  obtained  it,  in  whom  is  vested  the 
right  to  oppose  its  use  by  other  parties.  The  owner  of  a 
trade-mark  is  entitled  to  appeal  to  the  courts  of  Law  for 
protection  in  the  exercise  of  his  right  of  exclusive  use,  and 
to  assign  such  trade-mark  to  third  parties. 

Assignments  of  trade-marks  must  be  recorded  in  the 
proper  office.  The  Treasury  receipt  proving  the  payment 
of  the  tax  must  be  attached  to  all  applications. 

Specimens  of  the  marks  or  designs  are  filed  with  the 
records  of  the  Notarial  Office  of  the  Treasury.  The  in- 
fringement or  imitation  of  trade-marks  is  punishable  by  the 
penalty  of  a  fine  of  20  to  200  Bolivianos  ($8  to  $80),  in 
addition  to  the  penalties  provided  for  in  Art.  302  of  the 
Penal  Code. 

MINING  CODE. 

The  Bolivian  mining  laws  are  exceedingly  liberal,  as 
they  vouchsafe  to  all  aliens  the  same  rights  and  privileges 
enjoyed  by  citizens  of  the  country.  Any  person  legally 
capable  of  contracting  obligations  may  apply  for  any  number 
of  mining  claims,  not  exceeding  thirty.  The  area  of  each 
claim  is  fixed  by  law  at  one  hectare  or  10,000  square  metres, 
equal  to  about  two  and  one  half  acres,   measured   in  anv 

30 


direction  at  the  option  of  the  applicant,  and  the  claim  extends 
to  an  unlimited  depth. 

The  mode  of  proceeding  prescribed  by  Law  is  as  follows : 
Any  person  discovering  deposits,  placers,  lodes  or  veins, 
must  file  the  proper  application  with  the  Prefect  of  the 
Department  in  which  the  claim  or  claims  a])plied  for 
is  or  are  located,  and  attach  to  such  ap])lication  a  sketch 
or  map  plainly  showing  the  location  of  the  boundaries  of  the 
claim  or  claims,  to  which  the  application  refers,  as  well  as 
the  location  of  the  same  with  regard  to  adjoining  mining 
claims.  The  application  must  be  made  out  on  stamped  paper 
of  the  denomination  of  10  Bolivianos  ($4.00). 

The  Prefect,  after  having  caused  the  application  to  be 
published  in  the  newspapers  during  a  stated  period,  for  the 
purpose  of  ascertaining  whether  opposition  to  the  same  is 
entered  by  third  parties,  shall  issue  decree  of  concession, 
and  the  ownership  of  the  mining  claims  shall  pass  to  the 
applicant,  subject  to  an  annual  payment  of  5  Bolivianos 
($2.00)  for  each  claim. 

Applications  for  mining  claims  are  considered  as  having 
been  abandoned  in  case  of  failure  to  have  such  claims 
surveyed  and  staked  out  within  a  term  of  70  days  from  the 
date  of  first  publication.  Any  person  may  file  a  denouncement 
of  the  abandonment  of  an  application  for  mining  claims, 
requesting  that  the  same  be  adjudicated,  whenever  the  owner 
has  failed  to  comply  with  the  provisions  of  the  law  governing 
such  matter,  in  case  of  failure  of  such  owner  to  pay  the 
corresponding  annual  tax  or  license  fee. 

No  special  permit  is  required  for  preliminary  prospec- 
ting operations,  and  any  one  is  at  liberty  to  undertake  the 
same,  upon  giving  due  notice  to  the  authorities  of  the 
District  in  which  such  prospecting  is  to  be  done.  Mining 
machinery  and  implements  may  be  imported  into  the  country 
free  of  import  duty. 

CUSTOMS  DEPARTMENT. 

Although  Bolivia  has  at  the  present  time  no  outlet  on 
any  sea  in  her  own  dominion,  she  has  entered  into  various 
treaties  with  the  surrounding  countries,  for  the  purpose  of 
being  able  to  exercise  her  right  of  free  transit  through 
foreign  territory.     In  view  of  the  ample  facilities  afforded 

31 


by  these  international  agreements,  the  disadvantages  re- 
sulting from  the  lack  of  a  seaport  have  been  remedied  as  far 
as  possible. 

For  the  purpose  of  providing  the  commercial  interests 
of  the  country  with  the  most  diversified  means  for  the  trans- 
action of  foreign  trade,  the  Government  has  established 
Customs  Agencies  at  the  ports  of  Moliendo,  Antofagasta 
and  Arica,  the  first  named  being  in  Peruvian  and  the  two 
last  mentioned  on  Chilean  territory,  and  has  placed  the 
Bolivian  Consuls  in  charge  of  similar  agencies  in  Para, 
Rosario,  Puerto  Velho  and  Corumbá. 

The  following  list  shows  plainly  the  distribution  of  the 
Bolivian  Custom  Houses  over  the  different  sections  of  the 
country : 

Custom  Houses  for  the: 

Northern      District La  Paz 

Central  ''       Oruro 

Southwestern  "       Uyuni 

Southern  "        Villazón  (La  Quiaca) 

Southeastern  "       Yacuiba 

Eastern  "       Puerto  Suárez 

Northeastern  "  Villa  Bella,  Cobija  &  Manoa,  (Abuná) 

Consular  Invoices. 

The  amounts  to  be  collected  as  Consular  Fees  for  the 
certification  of  invoices,  are  as  follows: 

Consular  invoices  amounting  to  less  than  $200.  .  .$3.00 

"  $200  and  over 2% 

Bills  of  Lading  are  certified  free  of  charge. 
The  Bolivian  consulates  are  the  only  offices  authorized 
to   sell   Consular   Invoice   Blanks,   and  they  are   issued  -Jo 
applicants  at  the  following  rates: 

Per  set  of  4  copies $0.75 

"     5      ''       0.90 

The  name  of  the  Custom  House  through  which  the 
goods  are  to  pass  must  be  stated  in  the  Consular  invoice. 

32 


Five  copies  are  required  for  shipments  via  Moliendo, 
and  four  copies  for  such  as  are  to  pass  through  any  of  the 
other  Custom  Houses. 

Fire  arms,  cartridges,  etc.  may  be  shipped  wihtout 
special  permit  issued  by  the  Consul  or  Consular  Agent. 

The  Consular  Invoice  must  be  made  out  in  the  Spanish 
language  as  a  necessary  requirement. 

Furthermore,  all  Consular  Invoices  must  contain  the 
following  declarations : 

1.  The  name  of  the  port  of  destination  of  the  mer- 
chandise. 

2.  The  name  of  the  person,  firm  or  corporation  to  whom 
the  merchandise  is  consigned. 

3.  The  gross  and  net  weights  in  kilograms  ( 1  kilogram 
=2.2046  lbs.) 

4.  The  contents  of  the  packages,  to  be  authenticated  by 
the  presentation  of  commercial  invoices. 

5.  An  affirmation  of  the  shippers  that  the  contents  as 
stated  in  the  invoices  are  identical  with  the  actual 
contents  of  the  packages. 

In  order  to  avoid  the  possibility  of  customs  duty  being 
collected  twice  on  the  same  goods,  each  package  must  bear 
in  large  letters  the  inscription  "EN  TRÁNSITO  A  BO- 
LIVIA". 

COMMERCIAL  TRAVELLING  AGENTS. 

(Travelling  salesmen) 

Commercial  Agents  of  this  description  are  subject  to 
the  payment  of  municipal  taxes  in  all  the  cities  in  which  they 
do  business,  in  accordance  with  their  respective  tax  rates. 
The  tax  in  La  Paz  varies  between  200  and  300  Bolivianos 
($80.00  and  $120.00);  in  Cochabamba  it  amounts  to  LOOO 
Bolivianos  (S400.00)  ;  in  Oruro  to  250  Bolivianos  ($100.00)  ; 
in  Potosi  to  200  Bolivianos  ($80.00)  ;  in  Sucre  to  300  Boli- 
vianos ($120.00)  ;  in  Uyuni  to  250  Bolivianos  ($100.00) ; 
in  Santa  Cruz  it  varies  between  400  and  800  Bolivianos 
($160  to  $320),  and  the  tax  in  Tarija  is  200  Bolivianos 
($80.00).     As  these  taxes  are  paid  in  to  the  exchequer  of 

33 


holders  of  concessions  for  the  collection  of  taxes,  they  are 
inclined  to  offer  inducements  to  commercial  agents  who 
merely  furnish  security  and  deposit  with  the  Custom  Houses 
for  the  amount  of  the  samples  they  succeed  in  selling. 


MONOPOLIES. 

Bolivia  has  monopolies  on  alcohol,  tobacco  and  matches. 
The  first  mentioned  monopoly  has  reduced  the  sale  of  spirit- 
uous liquors,  while  those  on  the  two  last  mentioned  articles 
have  resulted  in  the  establishment  of  new  national  industries. 
The  revenues  derived  by  the  Treasury  from  the  alcohol  and 
tobacco  monopolies  amount  to  over  2,000,000  Bolivianos. 


DIPLOMATIC  AND  CONSULAR  AGENTS 
OF  BOLIVIA  IN  THE  UNITED  STATES. 

Hon.  Ignacio  Calderón,  Envoy  Extraordinary  and 
Minister  Plenipotentiary  at  Washington. 

Cónsul  General:  Adolfo  Balltvián. 

Consuls : 

Wilfred  Schoff  Esq Philadelphia,  Pa. 

Edwin  H.  Heath  Esq Kansas  City 

Federico  Harmwel  Esq Chicago,  111. 

Raymond  M.  Glaken  Esq Baltimore,  Md. 

Arthur  P.  Cushing  Esq Boston,  Mass. 

Carlos  Sanjinés  Esq San  Francisco,  Cal. 

Juan  Argote  Esq New  Orleans,  La. 

Vice  Consuls'. 

Tohn  D.  Leitch  Esq Norfolk,  Va. 

T.   G.   Gonigal Mobile,  Ala. 

The  Hon.  John  D.  O.  Rear  is  accredited  to  the  Bolivian 
Government  in  La  Paz  in  the  capacity  of  Envoy  Extraordi- 
nary and  jNIinister  Plenipotentiary  of  The  United  States. 

34 


With  the  exception  of  the  Secretary  of  Legation  in  La 
Paz,  who  also  exercises  the  Consular  functions,  the  United 
States  has  no  Consular  Agent  in  any  other  part  of  Bolivia. 

PAN  AMERICAN  CURRENCY. 

The  interesting  proposition  to  create  a  Pan  American 
currency  has  been  mentioned  in  the  Bulletins  of  the  Pan 
American  Union,  and  the  realization  of  this  plan  appears 
desiderable  to  us.  The  report  states  that  the  Hon.  Horatio 
G.  Knowles,  Ex-Minister  of  the  United  States  to  Bolivia, 
has  suggested  the  idea  to  have  all  the  American  countries 
undertake  the  coinage  of  gold  currency  of  uniform  fineness, 
for  the  purpose  of  making  it  legal  tender  in  all  the  different 
states  of  the  western  hemisphere.  He  proposed  that  the 
coins  in  question  should  bear  on  one  face  two  images,  repre- 
senting the  native  race  and  American  womanhood,  and  on 
the  reverse  the  arms  of  each  of  the  American  Republics,  and 
that  they  be  made  to  replace  the  British  Sovereign,  now  so 
generally  used. 

In  the  issue  of  the  Bulletin  of  the  said  Union  for  the 
current  month,  this  idea  is  amplified  by  Mr.  Horatio  Cassel- 
berry  of  Philadelphia,  who  suggests  that  the  said  coin,  while 
identical  in  shape  and  design  for  all  these  countries,  should 
not  represent  the  same  value  in  all  of  them,  because  in  his 
opinion  difficulties  would  be  apt  to  arise  with  regard  to  the 
exchange  of  the  said  currency  which  would  be  legal  tender 
in  21  countries,  in  each  of  which  the  legal  provisions  relating 
to  the  currency  are  different,  unless  all  of  them  should  previ- 
ously agree  upon  the  adoption  of  a  uniform  system.  But 
however  this  may  be,  we  think  it  would  be  worth  while  to 
make  the  foregoing  suggestions  a  subject  of  debate  on  this 
present  occasion. 

METRIC  SYSTEM  OF  WEIGHTS  AND  MEASURES. 

It  may  be  expedient  to  recall  in  this  connection  the 
suggestions  made  to  adopt  the  metric  system  of  measurements 
and  weights  in  the  United  States,  in  order  to  facilitate  cal- 
culations and  business  transactions,  and  to  conform  to  the 
system  generally  adopted  by  the  American  countries. 

35 


A    FEW    GENERAL    SUGGESTIONS    REGARDING 

THE    NATURE    OF    THE    ENTERPRISES  IN 

WHICH  TFIE  UNITED  STATES  CAPITAL 

MIGHT   BE   INVESTED   TO   GOOD 

ADVANTAGE   IN    BOLIVIA. 


United  States  Banks  in  Bolivia. 

Notwithstanding"  the  fact  that  there  is  a  general  demand 
for  the  estabhshnient  of  such  banks  in  all  the  Latin  American 
countries,  and  while  fully  aware  that  response  to  this  demand 
would  prove  theoretically  beneficial,  .we  still  adhere  to  our 
personal  opinion,  that  even  under  the  most  favorable  condi- 
tions the  volume  of  transactions  constituting  banking  opera- 
tions in  the  proper  sense  of  the  term,  such  as  loans,  the 
discounting  of  commercial  paper,  deposits,  etc.  (i.  e.  the  bank- 
ing business  as  now  conducted  by  similar  national  institu- 
tions) would  not  be  sufficient  to  constitute  a  decisive  factor 
in  favor  of  their  organization.  In  our  judgment  the  actual 
requirements  of  Latin  America  call  for  an  extension  of  the 
present  banking  connections  on  an  efficient  basis,  and  this 
present  convention  offers  a  favorable  opportunity  for  pro- 
moting the  extension  of  such  reciprocal  relations  between 
American  banks. 

Men  prominent  in  the  financial  world  of  this  country 
have  expressed  the  opinion  that  "Banks  are  not  established 
in  the  natural  order  of  things  for  the  purpose  of  creating 
business,  but  for  managing,  developing  and  extending  such 
business  as  has  been  previously  established."  This  opinion 
is  based  on  the  methods  followed  by  British,  German  and 
Belgian  capital  in  South  America,  where  the  financiers  of 
these  European  countries  began  by  investing  their  funds 
in  railways,  manufacturing  and  other  enterprises,  while 
their  banking  interests  only  established  South  American 
branches  later  on,  and  practically  merely  for  attending  to 
the  foreign  business  of  their  own  countries.  The  principal 
and  i)rimary  requirement  of  South  America  is  the  liberal 
investment  of  United  States  capital,  and  when  that  has  been 
fulfilled,  a  vast  and  profitable  field  of  operations  will  have 
been  opened  up  for  the  banking  interests  of  this  country. 

36 


Among  concurring  opinions  regarding  these  matters  we 
may  quote  the  following  statement  of  Mr.  F.  Abbot  Goodhue 
of  Boston: 

The  wisest  plan  at  the  present  time  is  to  make  more 
loans  to  South  America,  instead  of  opening  branches  of  bank- 
ing institutions.  Mone}^  expended  for  loans  will  be  pro- 
fitabh'  invested,  business  will  become  prosperous,  and  we 
shall  thus  open  the  way  for  the  establishment  of  banks." 
Similar  opinions  are  now  being  adopted  and  maintained  by 
financial  authorities,  and  the  conviction  is  gaining  ground 
that  it  is  an  absolutely  necessary  requirement  for  the  South 
American  countries  and  business  interests  to  obtain  credits 
which  will  enable  them  to  pay  for  the  supplies  which  this 
countrv  sells  them.  This  was  actually  the  method  followed 
by  the  European  countries,  which  until  recently  were  given 
the  preference.  1)ecause  the  Old  World  money  markets  were 
loaning  at  cheaper  rates  and  were  in  a  position  to  compete  to 
good  advantage  against  the  delivery  charges,  rates  of  interest, 
etc.  demanded  in  the  United  States.  This  may  be  explained 
by  the  fact  that  the  European  countries  are  much  older,  and 
that  the  mass  of  their  population  has  been  able  to  accumulate 
ample  savings,  such  as  are  practically  unheard  of  in  the 
United  States,  with  the  result  that  they  have  an  abundance 
of  available  funds  to  lend.  Moreover,  the  necessary  invest- 
ments for  railways  and  other  public  enterprises  have  already 
been  made  in  the  countries  of  Europe,  and  as  no  further  funds 
are  required  for  such  purposes,  their  people  are  naturally 
induced  to  look  aliroad  for  chances  to  invest  their  unproduc- 
tive capital,  and  consequently  satisfied  to  get  moderate 
returns  from  the  same. 

The  present  change  in  the  direction  in  which  South 
America  must  look  for  her  supplies,  makes  it  imperative, 
that  1)usiness  be  conducted  on  the  above  indicated  basis,  and 
in  this  connection  it  becomes  necessary  of  course  to  provide 
sufficient  security  for  the  capital  to  be  invested — by  giving 
the  proper  guarantees  which  Bolivia  is  fortunately  in  a  posi- 
tion to  offer  to  a  satisfactory  extent. 

What  we  need,  most  of  all,  are  financial  organizations 
that  will  uplift  our  mining  industry,  agriculture,  arts,  manu- 
factures, immigration,  etc.,  by  establishing  several  special 
banks,  as  well  as  factories,  an  agricultural  loan  and  credit 
system,  and  similar  institutions,  all  of  which  require  through 

37 


investigation,  while  we  are  compelled  to  confine  ourselves  on 
this  occasion  to  a  few  superficial  remarks. 

TIN  AND  COPPER  SMELTING  WORKS. 

When  the  European  war  broke  out,  and  Bolivia  was 
prevented  from  exporting"  these  ores  to  Europe  through  the 
usual  channels,  the  Bolivian  Government  made  the  most  stre- 
nuous efforts  to  solve  this  exceedingly  important  problem. 

The  ores  could  not  be  shipped  to  this  country,  because 
there  were  no  smelting  works  in  the  United  States  available 
for  the  purpose.  To  have  them  smelted  and  refined  by 
private  concerns  would  have  been  a  risky  undertaking,  as 
it  might  reasonably  be  excepted  that  the  temporarily  sus- 
pended relations  Ijetween  the  mine  owners  and  the  British 
and  German  smelting  works  would  be  resumed  upon  the 
conclusion  of  the  war. 

In  view  of  this  emergency  the  Consulate  General  of  Bo- 
livia in  New  York  suceeded  in  interesting  capitalists  in 
this  country  in  the  matter.  These  parties  submitted  to  the 
Bolivian  Government  a  proposition  based  on  the  suggestion 
that  a  smelting  works  for  the  purposes  in  question  should 
be  erected  and  installed  in  the  United  States,  for  account  of 
the  Government  of  Bolivia,  as  being  the  only  available  means 
for  making  sure  that  supplies  of  ore  W'Ould  continue  to  be 
shipped  to  these  Government  w^orks,  even  after  the  termina- 
tion of  the  war,  by  giving  the  Bolivian  mine  owners  an 
interest  in  the  proportional  quantity  of  ore  supplied  by  them 
to  the  Smelting  Works,  following  the  cooperative  plan 
adopted  in  Austria  and  other  countries.  The  bankers  offered 
to  advance  the  funds  required  for  the  erection  and  complete 
installation  of  the  plant,  and  to  take  part  in  the  management, 
under  the  strict  supervision  that  was  to  be  exercised  by  the 
Bolivian  Government.  Among  other  matters,  which  it  would' 
be  idle  to  mention  on  this  occasion,  it  was  planned  that  the 
Smelting  Works  were  to  supply  this  country  wnth  about 
30,000  tons  of  block  tin,  representing  an  amount  two  thirds 
of  its  annual  consumption,  and  that  Bolivia  was  thus  to 
provide  a  sum  in  excess  of  20,000,000,  to  be  used  for  sub- 
stituting New^  York  exchange  for  London  exchange,  and 
eventually  to  be  invested  in  export  goods. 

The  Bolivian  Government  arrived  at  the  conclusion  that 

38 


the  proposition  should  not  be  accepted,  on  the  i^round  that 
"it  would  induce  the  State  to  transgress  beyond  the  scope 
of  its  proper  functions,  and  thus  to  become  an  operator  en- 
gaged in  the  metallurgical  industry," 

On  the  other  hand,  our  Government,  responding  to  an 
evident  national  desire,  has  for  some  time  been  considering 
the  erection  and  installation  of  an  electric  smelting  works 
in  its  own  territory,  in  consideration  of  the  fact,  that  while 
there  is  an  abundance  of  available  hydraulic  power,  the  supply 
of  coal  is  scarce,  and  its  importation  would  place  a  plant 
operated  by  fuel  combustion  at  a  disadvantage. 

In  support  of  these  plans  on  our  part,  we  have  caused 
tests  to  be  made  in  this  country,  with  the  following  results : 
Bolivian  tin  concentrates  ("barrilla")  tested  in  New  Jersey, 
produced  an  output  of  66.96%,  and  when  smelted  at  the 
Pittsburgh  Electric  Smelting  Works,  the  product  was  block 
tin  98.75%  pure  (capable  of  being  further  refined),  with  a 
residue  of  1.89%  slag. 

These  recently  obtained  data  have  been  transmitted,  so 
as  to  make  them  available  in  case  they  are  considered  of 
sufficient  importance. 

This  matter  has  meanwhile  aroused  very  great  interest, 
and  it  appears  from  press  reports  that  the  "Compañía  Esta- 
ñífera de  Llallagua,"  owned  by  Chilean  capitalists,  but 
having  its  property  in  Bolivia,  has  organized  a  company 
for  the  erection  and  installation  of  a  smelting  works  on  the 
Pacific  Coast,  at  the  port  of  Arica  or  Mejillones. 

We  beg  to  call  the  attention  of  parties  in  the  United 
States,  interested  in  such  enterprises,  to  the  foregoing 
particulars.  In  case  any  of  them  should  be  inclined  to  take 
up  this  proposition,  the  only  practical  way  to  proceed  would 
be,  in  our  judgment,  to  acquire  the  ownership  of  tin  mines 
in  Bolivia,  by  means  of  an  efficiently  constituted  organization, 
and  in  such  manner  that  the  Bolivian  owners  would  still 
retain  an  interest  in  the  enterprise.  In  this  manner  (provided 
of  course  it  should  for  some  reason  or  other  prove  impractic- 
able to  instal  an  electric  smelting  w^orks  in  Bolivia)  a  plant 
could  easily  be  erected  and  installed  in  the  United  States, 
as  it  would  have  the  output  of  the  Company's  own  mines 
to  work  on,  and  therefore  be  on  a  solid  basis,  without  any 
risk  of  the  supplies  of  material  being  turned  back  into  their 
former  channels,  upon  the  conclusion  of  the  European  war. 

39 


THE  MADEIRA-MAMORÉ  RAILWAY. 

Although  on  Brazilian  soil,  this  means  of  communication 
is  of  preeminent  importance  for  Bolivia,  as  it  provides  her 
with  a  means  of  access  to,  and  egress  from  the  Atlantic, 
and  has  opened  up  to  human  enterprise  vast  territories 
abounding  in  natural  wealth  seldom  equalled.  In  this  con- 
nection it  will  be  sufficient  to  point  out,  that  the  highest 
grade  rubber  known  is  gathered  in  these  districts,  which 
also  supply  many  other  products  that  are  now  being  gradually 
discovered  and  worked. 

The  fondest  hopes  and  expectations  of  Bolivia  have  for 
time  immemorial  been  centered  in  this  railway,  and  it  was 
for  this  reason  that  she  consented  to  cede  to  Brazil  her 
extensive  and  luxuriant  territory  in  El  Acre,  placing  the 
fullest  confidence  in  the  material  advance  and  other  benefits 
which  the  country  would  derive  from  this  railway,  which 
Brazil  bound  herself  to  construct.  She  has  loyally  fulfilled 
this  obligation,  nowithstanding  excessive  financial  sacrifices, 
far  surpassing  the  estimated  cost. 

The  Company  that  undertook  the  construction  of  the 
railway  was  incorporated  under  the  laws  of  Maine,  and 
became  involved  in  financial  difficulties  which  do  not  call  for 
discussion  at  this  time,  with  the  result  that  the  administration 
of  its  affairs  has  recently  been  placed  in  the  hands  of 
Trustees. 

Inasmuch  as  both  Brazil  and  Bolivia  have  interests  of 
the  utmost  importance  that  are  closely  connected  with  the 
successful  operation  of  the  said  railway,  we  venture  to  point 
out,  that  it  will  be  expedient  for  both  countries  to  exert  every 
possible  effort,  to  the  limit  of  their  capacity,  with  a  view  to 
saving  the  situation  and  imparting  new  life  to  the  enterprise, 
by  adequate  reorganization,  either  by  interesting  capitalists 
in  the  United  States  in  an  arrangement  to  be  based  on  a  long 
term  lease,  or  by  reorganizing  the  Company  in  some  way 
which  it  is  not  incumbent  upon  us  to  discuss. 

THE    YUNGAS    RAILWAY. 

The  Yungas  Provinces,  located  at  a  short  distance  from 
La  Paz,  present  not  only  some  of  the  most  beautiful  landscape 
panoramas  in  the  world,  but  also  contain  an  exuberant  wealth 

40 


of  natural  products,  such  as  different  kinds  of  wood,  fruit, 
cocoa,  etc.  For  the  purpose  of  opening  up  an  outlet  for 
these  products,  and  of  increasing  the  output,  the  Bolivian 
Government  is  now  endeavoring  to  interest  United  States 
capital  in  the  construction  of  a  railway  which  is  to  connect 
the  Bolivian  metropolis  wnth  these  virgin  territories  and  all 
their  natural  wealth.  The  estimated  cost  of  the  railway  is 
only  2,500.000,  to  be  secured  by  ample  guaranties. 


BOLIVIAN   p:nterprises 

CROWDING  EACH  OTHER  IN  SEEKING  THE 

COOPERATION  OF  UNITED  STATES 

CAPITAL. 

Since  the  European  war  unexepectedly  cast  its  shadow 
over  the  earth,  all  nations  have  apparently  lived  in  the  hope 
of  being  able  to  redeem  at  least  some  of  the  losses  they  have 
suffered,  by  appealing  to  this  country  as  the  successor  in 
the  great  financial  mission,  the  burden  of  which  has  here- 
tofore rested  on  the  shoulders  of  Europe. 

Applicants  in  ever  increasing  niunbers  have  meanwhile 
presented  themselves  at  the  Consulate  General  of  Bolivia  in 
New  York,  with  the  request  to  be  placed  in  touch  with 
capitalists  interested  in  such  propositions,  for  the  purpose 
of  calling  upon  them  to  undertake  various  enterprises  in 
the  field  of  mining,  agriculture,  arts,  industries  etc.  and  the 
proposition  has  even  been  made  to  establish  Bolivian  business 
agencies  in  this  city. 


OFFICIAL    INFORMATION    BUREAUS. 

In  ^•iew  of  this  forward  movement,  it  will  in  our  opinion 
be  expedient  to  establish  such  sources  of  reliable  information, 
for  the  purpose  of  guiding  the  judgment  of  others  and  pro- 
tecting to  a  certain  extent  the  interests  of  Bolivian  business 
men  and  manufacturers,  as  well  as  of  the  capitalists  of  this 
country,  who  are  in  quest  of  connections  and  combinations,, 
that  will  prove  mutually  beneficial  and  profitable. 


41 


CONCLUSION. 


Commercial  intercourse  having-  been  established  for 
many  years  between  Bolivia  and  Great  Britain,  Germany  and 
France,  all  of  which  countries  preeminently  adapted  them- 
selves to  existing  conditions,  by  facilitating  business  inter- 
change, it  was  a  foregone  conclusion  that  the  channels  of 
trade,  if  guided  into  different  directions,  would  naturally 
take  their  course  towards  the  United  States,  where  they  might 
be  expected  to  meet  with  a  favorable  reception. 

In  this  connection,  however,  we  are  confronted  by  the 
following  problems: 

I.  Bolivian  commerce,  whose  funds  were  either  out- 
standing in  F.uro.pe,  or  derived  from  liberal  European  credits, 
was  suddlenly  prevented  from  recovering  the  former,  or  from 
availing  itself  of  the  latter  in  this  country. 

II.  On  the  other  hand.  North  American  capitalists, 
commanding  abundant  funds,  for  which  their  own  country 
offered  exceedingly  profitable  chances  for  investment,  and 
not  satisfied  wnth  the  moderate  profits  which  European  Capi- 
tal was  content  to  accept,  hesitated  to  open  credits,  partly  in 
consequence  of  ignorance  of  the  conditions  and  requirements 
that  are  the  foundation  of  Bolivian  trade.  North  American 
manufacturers,  while  desirous  of  opening  up  new  markets 
for  their  products,  do  not  venture  to  engage  in  trials  in  this 
direction,  for  which  they  have  not  prepared  themselves  by 
prior  inquiries  into  existing  conditions,  and  by  a  thorough 
knowledge  of  the  territories  in  question. 

In  my  opinion,  it  is  on  the  basis  of  these  two  factors 
that  the  difficult  task  of  solving  this  complicated  problem 
will  have  to  be  undertaken. 

A  great  has  been  deal  said  about  the  practical  utility 
of  establishing  in  South  America  a  system  of  Banks  owned 
by  U.  S.  capital,  a  necessity  to  w^hich  this  country  has  re- 
sponded by  authorizing  the  organization  of  foreign  branches, 
such  as  have  already  been  opened  in  Buenos  Aires  and  Rio 
de  Janeiro.  However,  while  this  measure  does  afford  obvious 
advantages,  by  facilitating  direct  commercial  interchange  on 
a  more  economical  basis,  its  adoption  will  by  no  means  solve 

43 


the  probelm  as  such,  unless  these  Banks  are  wihins^-  to  come  to 
the  rescue  of  merchants  and  prockicers,  by  advancin^^  them 
funds  to  tide  them  over  the  present  crisis,  which  is  undoubt- 
edly merely  transitory. 

Referring-  once  more  to  the  two  principal  sources  of 
supply  for  the  Bolivian  export  trade,  I  am  firmly  convinced 
that  the  Government  of  Bolivia  will  not  shrink  from  any 
sacrifices  required  for  the  advancement  and  possibly  for  the 
regeneration  of  the  rubber  extracting  industry,  whose  field 
is  irrefutably  the  richest  and  most  liberally  endowed  territory 
in  the  world. 

The  present  decline  of  this  industry  is  due  to  the  per- 
severing efforts  of  the  British  to  uproot  it  in  the  Amazon 
countries,  and  to  transplant  it  to  their  possessions  in  the  Far 
East,  which  have  proven  successful  in  consequence  of  the 
application  of  scientific  and  economical  methods,  and  there 
is  no  reason  why  they  should  not  likewise  be  applied  to  our 
rubber  producing  districts  with  the  same  determination  that 
will  undoubtedly  insure  good  results.  To  this  end  it  will  be 
imperative  to  decide  on  a  system  for  the  consolidation  of 
priA'ate  property,  while  avoiding  the  accumulation  of  large 
estates  and  offering  inducements  to  settlers. 

A  further  urgent  necessity  is  a  reduction  in  the  cost 
of  transportation  over  the  Madeira-Mamoré  railway,  and  the 
subsidizing  of  a  steamship  line  to  provide  a  direct  steamer 
service  to  Porto  Velho,  one  of  the  terminals  of  the  said 
railway  and  a  point  up  to  which  the  river  is  ready  navigable 
for  ocean  steamers  of  a  tonnage  of  three  to  four  thousand 
tons,  thereby  establishing  a  direct  traffic  route  between  the 
said  port  and  those  on  the  western  Pacific  coast,  by  way  of 
the  Panama  canal. 

The  foregoing  propositions  provide  a  safe  and  reliable 
basis  for  the  investment  of  North  American  capital  for  the 
promotion  of  rubber  tree  plantation  enterprises  which  just 
now — more  than  at  any  other  time — are  a  subject  well  worth 
careful  study  and  consideration  on  the  part  of  the  practical 
minds  of  farsighted  men,  in  view  of  the  serious  complications 
liable  to  result  from  the  present  tremendous  clash  of  arms, 
whose  devastating  consequences  may  even  deal  a  serious 
blow  to  the  similar  industrial  enterprises  in  Asia,  to  which 
we  have  had  reference. 

In  considering  these  matters,  we  must  not  overlook  the 

44 


fact  that  in  Bolivia  as  well  as  in  the  other  South  American 
countries,  it  was  British,  French  and  Belgian  capital  that 
supplied  the  loans  and  built  the  railways,  in  view  of  the 
moderate  rates  of  interest  charged  and  the  liberal  terms 
allowed,  neither  of  which  appear  to  satisfy  the  capitalists  of 
the  United  States. 

It  will  be  well  to  bear  in  mind,  moreover,  that  Bolivia 
can  unfortunately  not  expect  to  draw^  immigration  from  Great 
Britain,  France  and  the  United  States,  since  these  countries 
offer  to  their  population  greater  inducements  at  home  than 
could  possible  be  offered  them  abroad.  The  Germans,  on  the 
other  hand,  are  spreading  everywhere,  creating  industrial 
centers  and  commercial  associations,  admirabh^  organized, 
which  they  thus  succeed  in  rendering  profitable  both  for 
themselves  and  for  the  country  in  which  they  establish  them. 
Overpopulation  of  their  own  country  and  the  consequent  dif- 
ficulty of  earning  a  living  at  home,  cause  the  Italian  and 
Spanish  people  to  emigrate,  and  they  constitute  an  element 
that  always  meets  with  a  good  reception. 

In  Bolivia,  the  increase  of  her  population  is  a  necessity 
overshadowing  all  other  considerations,  and  in  this  connec- 
tion it  w^ill  be  well  to  bear  in  mind  the  saying  that  immigration 
"is  not  attracted,"  but  "attracts  itself."  Only  with  an 
increased  population  will  she  be  able  to  increase  her  produc- 
tion, and  consequently  her  imports,  thereby  providing  traffic 
and  revenue  for  the  comparatively  extensive  railway  system 
which  Bolivia  now  has  at  her  service. 

It  may  not  be  out  of  place,  perhaps,  to  state  on  this 
occasion,  as  an  expression  of  our  personal  conviction,  that, 
while  admiring  and  honoring  the  United  States  for  its  gi- 
gantic enterprise  in  joining  the  two  Oceans  by  the  construc- 
tion of  the  Panama  Canal,  from  which  posterity  wall  derive 
such  benefits  as  it  would  be  difficult  for  our  minds  to  foretell, 
we  do  not  think  that  it  will  bestow  on  countries  like  Bolivia 
such  immediate  and  tangible  benefits  as  have  generally  been 
expected.  The  Canal  as  such  cannot  effect  an  increase  either 
in  the  production  or  imports  of  the  country,  and  before  it 
will  be  able  to  exert  an  influence  on  the  same,  it  will  be 
indispensable  to  increase  both  the  producing  and  consuming 
population,  and  all  efforts  to  that  end  must  necessarily  be 
centered  in  the  Government  and  in  instutions  interested  in 
the  furtherance  of  immigration. 

NEW  YORK,   MAY  20th,    1915. 


^l^:i.\,::^ís>S^:. J  r_!,^jIiJ^ 


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